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Supplier Selection

Select for production fit. Not just the lowest quote.

A manufacturing partner should be evaluated against the actual product, process, quantity, quality, capacity, engineering, communication, and supply requirements of the program.

Evaluation Framework

A supplier decision should combine technical, operational, and commercial factors.

Process Capability TECHNICAL
Quality System CONTROL
Capacity SUPPLY
Communication SUPPORT
Total Cost COMMERCIAL
Evaluation Criteria

Look beyond whether the supplier owns the right machine.

01 / PROCESS

Technical Capability

Equipment, manufacturing processes, materials, tolerances, part size, complexity, and secondary operations.

02 / QUALITY

Quality Systems

Inspection equipment, process control, corrective action, traceability, documentation, and acceptance methods.

03 / CAPACITY

Production Capacity

Equipment loading, labor, scheduling, bottlenecks, subcontractors, and ability to support future demand.

04 / COST

Total Cost

Piece price, tooling, freight, inventory, quality, packaging, engineering support, and supply risk.

05 / SUPPORT

Communication

Quote response, engineering questions, schedule updates, corrective actions, and change management.

06 / RISK

Supply Continuity

Material sources, critical equipment, tooling, maintenance, supplier concentration, and contingency planning.

Selection Process

Move from a long supplier list to an approved production partner.

01
Define the requirement

Clarify process, materials, quantities, tolerances, quality, documentation, tooling, and delivery.

02
Screen supplier capability

Remove suppliers whose equipment, processes, materials, scale, or quality systems do not fit the program.

03
Issue a consistent RFQ

Provide comparable information to each supplier so differences in quotations are meaningful.

04
Review assumptions

Identify exclusions, substitutions, tooling assumptions, lead-time assumptions, and differences in quoted scope.

05
Qualify before launch

Use audits, samples, first articles, documentation, references, or pilot production where appropriate.

Industrial manufacturing supplier environment
Comparing Quotes

Two supplier prices are only comparable when they include the same scope.

Pricing differences may come from material assumptions, inspection, tooling, packaging, freight, production quantity, lead time, finishing, subcontracted work, or documentation.

Confirm material grade and sourcing assumptions
Compare production quantity and annual-volume assumptions
Identify tooling, fixtures, gauges, and one-time charges
Review finishing and secondary operations
Compare inspection and documentation requirements
Confirm packaging, freight, and delivery terms
Warning Signs

Supplier risk sometimes appears before the purchase order.

01

Unanswered Technical Questions

A supplier that avoids clarifying unclear requirements may be building assumptions into the quote.

02

Unrealistic Lead Times

A schedule that ignores tooling, materials, capacity, inspection, or outside processing should be examined carefully.

03

Undefined Subcontracting

Critical processes may be performed elsewhere even when the buyer assumes everything is completed internally.

04

Weak Change Control

Material, process, tooling, or source changes should not occur without the communication required by the program.

After identifying candidates, qualify the supplier in greater depth.

Supplier qualification examines the manufacturing system behind the quotation, including quality, process control, capacity, inspection, and documentation.

Supplier Qualification Guide →